Bond Yields Plunge Most In A Year, Dollar Spikes As Inflation Soars On the week, the major stock indices were mixed with The Dow lower, S&P unch-ish, and Small Caps and Big-Tech leading... The flip-flopping rotation between big-tech and small caps continued all week... Growth won the week as traders rotated back from value stocks... Source: Bloomberg Meme stocks also roller-coastered this week... Source: Bloomberg Banks notably underperformed the market this week as yields tumbled... Source: Bloomberg Healthcare stocks outperformed as financials lagged... Source: Bloomberg VIX closed with a 15 handle for the first time since before the pandemic... Source: Bloomberg But, the big story of the week was the collapse in Treasury yields (in the face of a soaring CPI print) as bond shorts were increasingly squeezed... Source: Bloomberg Bond shorts this week... This week saw 10Y Yields drop 10bps - the biggest weekly drop since last June (4th weekly drop in a row)... Source: Bloomberg The Treasury yield curve also flattened by the most since last June this week... Source: Bloomberg And breakevens saw their biggest weekly drop since April 2020... Source: Bloomberg The dollar screamed higher today... erasing all the losses from last Friday's payrolls plunge... Source: Bloomberg Cryptos ended the week mixed with Ether notably underperforming Bitcoin... Source: Bloomberg ETH/BTC saw a big drop on the week (second biggest weekly drop in ETH relative to BTC since Jul 2019)... Source: Bloomberg The dollar's spike today slammed gold to the week's biggest loser in commodity-land as crude managed gains... Source: Bloomberg Is it time for copper crash or gold run? Or are yields completely off base still? Source: Bloomberg And finally, The Fed's balance sheet reached $8 trillion this week for the first time ever - basically a double since the start of the pandemic panic-response... Source: Bloomberg And the balance sheet keeps expanding despite the collapse of COVID... Source: Bloomberg Tyler Durden Fri, 06/11/2021 - 16:00